The UK government has unveiled proposals to accelerate the rollout of homegrown clean energy projects, supporting its target of achieving a fully decarbonised power system by 2030.
A consultation on reforms to the flagship Contracts for Difference (CfD) scheme has been launched, aiming to remove planning barriers and attract further investment in renewable energy.
The consultation, open until 21 March, outlines several measures designed to optimise the CfD scheme and deliver value for UK energy consumers.
These include relaxing eligibility criteria for fixed-bottom offshore wind projects to accelerate deployment; revising how offshore wind budgets are set and published to enhance efficiency; and increasing CfD contracts beyond the current 15-year limit to improve cost-effectiveness among others.
The proposed reforms follow the Allocation Round 6 (AR6) in 2023, which awarded contracts to 128 projects with a combined capacity of 9.6GW—enough to power approximately 11 million homes.
The reforms form part of the UK’s broader Clean Power 2030 strategy, designed to reduce reliance on volatile global fossil fuel markets while creating jobs and driving economic growth.
In addition to the CfD consultation, the government recently introduced the Clean Industry Bonus, encouraging offshore wind developers to invest in cleaner supply chains and boost employment in industrial communities.
The government’s response to the consultation is expected ahead of Allocation Round 7 (AR7).
Among the additional proposals being considered include enabling CfD support for repowered onshore wind projects; extending phasing to floating offshore wind (FLOW) projects; and expanding the Target Commissioning Window for solar projects from three to six months.
It also includes restricting the ability of existing CfD generators to apply surrendered capacity from previous allocation rounds into AR7.
